Cancellation of flat booked under subvention scheme
I booked a flat in Noida extn in Dec 2015 under subvention scheme ("no emi till possession"). I payed 7% down payment and availed 80% loan. Till date I have payed ~2/3rd of the total flat value to the builder.
As per the agreement builder was supposed to deliver the flat by mid-2019 but I spoke to them yesterday and they said they will be able to deliver the flat by end of 2020.
The grace period of the subvention scheme got over in dec 2017 and builder promised to reimburse the pre-emi but till date has payed only 3 installments (out of the 8 months).
Because of some serious financial problem with my family i wont be able to continue with the flat. I spoke to the builder and he said they cannot cancel the booking especially booked under subvention scheme.
As per the agreement (which was pre-RERA time), if I cancel the booking the builder will forfeit the “Earnest Money” (7% down payment) and “Non-refundable amount” (interest payed by the builder).
I don’t know if I should go ahead and cancel the booking because it will cause huge financial loss but I am not in the position to continue it as well. Can you please suggest the most viable way for this.
Asked 5 months ago in Property Law from Noida, Uttar Pradesh